Stupid is pre paying 6 months of hosting for a device which may or may not exist 2 months from now.
I'm still optimistic about KNC, but am trying to be realistic.
Absolutely. Realistic risk management and cash management doesn't align with the pre-payment model. It's not like pre-paying for a hotel room close to home at Christmas or a ticket to a concert. You know those are going to happen. I'm still optimistic about KNC, but am trying to be realistic.
Prepayment for hosting particularly doesn't make sense. They have your equipment, and can "lien" your bitcoin earnings if you don't make the monthly payments. They're likely using the prepayment to fund their setup costs. Nice, if they can get it. But there's no reason to give it to them unless there were a significant discount for prepayment.
Actually, pre-payment does make sense as they're only starting that business and have no clue how it will go. There might also be substantial setup costs, unless they get a "deal", but they need enough buying power (starting from zero). It's a way for them to only sign up the serious customers. If/when the ball is rolling, they will look at adding more customers through cheaper/shorter offerings.
-some could use that as a template...), I would think their insurance is covering their own expensive gear and/or they're covered by the DC hosting them (if they don't have their own).
